Who:
Victim: City of Blaine, Minnesota
Perpetrators: An international wire fraud network operating out of Maryland
What:
Incident: The City of Blaine fell victim to a sophisticated online billing scam in August 2023, resulting in a loss of over $1.5 million. The scam involved fraudulent emails and bank accounts that impersonated a legitimate contractor, leading the city to mistakenly send payment to the scammers.
Discovery: The fraud was uncovered when the real contractor, New Look Contracting, reported not receiving the payment, prompting the city to investigate.
Impact:
Financial Loss: The city lost $1.5 million of taxpayer money, which had to be paid again to the legitimate contractor.
Ongoing Investigation: The incident is part of a larger federal investigation into a fraud network. Blaine has not publicly disclosed the details, raising concerns about transparency.
Broader Context: Similar scams have affected other communities in the Twin Cities area, highlighting the vulnerability of local governments to such frauds.
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